Opposition from minority shareholders to a restructuring effort by the Jardine Group is growing, with some investors considering going to court over its plan to buy out a London and Singapore-listed unit for what they say is a US$1 billion ($1.34 billion) discount.
See: Jardine Matheson Holdings to acquire remaining stake in Jardine Strategic for US$5.5 bil; Jardine Strategic shareholders to receive US$33 per share
Some shareholders are considering asking courts in Bermuda, where Jardine Strategic Holdings Ltd. is incorporated, to assess its fair value, said an advisor to the investors, in a bid to make Jardine Matheson Holdings Ltd. raise its acquisition price.
Jardine Matheson on Monday said it planned to acquire the 15% of Jardine Strategic it doesn’t own for US$5.5 billion in cash, representing US$33 per share.
While the amount is at a 20% premium to Friday’s closing price of Jardine Strategic, it’s a discount of at least 20% to the value of the company’s listed assets, according to Justin Tang, head of Asian research for United First Partners, which advises investors who hold some 2 million of the firm’s shares.